,,ii  #aah? ,,congress  #a/ ,session    
,s4 #cbdc  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,novemb] #g1 #bjbc,mr4 
,ricketts introduc$ ! foll[+ bill2 :i* 0
 read twice & ref]r$ to ! ,committee on 
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to exclude all    
milit>y retirem5t & relat$ b5efits f    
,f$]al income tax4  #a4 ,%ort title ,?is
 ,act may be cit$ z ! ,tax ,cuts =      
,vet]ans ,act ( #bjbc4  #b4 ,exclusion (
 all milit>y retirem5t & relat$ b5efits 
7a7 ,9 g5]al ,section #abb ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  #abb4 ,c]ta9 uni=m$ s]vices   
retirem5t pay & relat$ b5efits  7a7     
,g5]al rule ,9 ! case ( a memb] or =m]  
memb] ( ! arm$ =ces ( ! ,unit$ ,/ates1  
gross income does n include-- 7#a7 any  
retir$ or reta9] pay paid "u title #aj  
or #ad1 ,unit$ ,/ates ,code1 or  7#b7   
any am\nts n describ$ 9 section         
#ajd7;a77#d7 receiv$ z mon?ly           
comp5sation1 p5sion1 pay1 annuity1 or   
all[ance paid "u title #aj1 #ad1 #cg1 or

 #ch1 ,unit$ ,/ates ,code1 9 connection 
) a disability or combat-relat$ injury  
or disability or dea? ( a memb] ( ! arm$
 =ces4  7b7 ,c]ta9 r$uc$ uni=m$ s]vices 
retirem5t pay  7#a7 ,9 g5]al ,9 ! case (
 a memb] or =m] memb] ( ! uni=m$ s]vices
 ( ! ,unit$ ,/ates o!r ?an a memb] or   
=m] memb] ( ! arm$ =ces1 gross income   
does n include ! am\nt ( any r$uction 9 
retir$ or reta9] pay pursuant to !      
provisions ( *apt] #gc ( title #aj1     
,unit$ ,/ates ,code4  7#b7 ,special rule
  7,a7 ,am\nt exclud$ f gross income ,9 
! case ( any individual ref]r$ to 9     
p>agraph 7#a71 all am\nts receiv$ z     
retir$ or reta9] pay %all be exclud$ f  
gross income until !re has be5 s exclud$
 an am\nt equal to ! consid]ation = !   
contract4 ,! prec$+ s5t5ce %all apply   
only to ! ext5t t ! am\nts receiv$ w\ld1
 b = su* s5t5ce1 be includible 9 gross  
income4  7,b7 ,consid]ation = ! contract
 ,= purposes ( subp>agraph 7,a7 &       
section #gb7n71 ! t]m consid]ation = !  
contract means1 9 respect ( any         

individual1 ! sum (-- 7i7 ! total am\nt 
( ! r$uctions be=e ,janu>y #a1 #aiff1 9 
! individual's retir$ or reta9] pay by  
reason ( an election "u *apt] #gc (     
title #aj ( ! ,unit$ ,/ates ,code1 &    
7ii7 any am\nts deposit$ at any "t by ! 
individual pursuant to section #adch or 
#adeb7;d7 ( su* title #aj4  7c7         
,def9itions ,= purposes ( ?is section1 !
 t]ms arm$ =ces & uni=m$ s]vices h !    
respective mean+s giv5 su* t]ms by      
section #aja ( title #aj1 ,unit$ ,/ates 
,code4  4  7b7 ,con=m+ am5dm5ts  7#a7   
,con=m+ repeal  7,a7 ,9 g5]al ,section  
#adjc ( title #aj1 ,unit$ ,/ates ,code1 
is repeal$4  7,b7 ,cl]ical am5dm5t ,!   
table ( sections at ! beg9n+ ( *apt] #ga
 ( su* title is am5d$ by /rik+ ! item   
relat+ to section #adjc4  7#b7          
,annuities ,subsection 7n7 ( section #gb
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ by /rik+ ,subsection 7b7 & ins]t+ 
,9 ! case ( any memb] or =m] memb] ( !  
uni=m$ s]vices ( ! ,unit$ ,/ates o!r ?an
 a memb] or =m] memb] ( ! arm$ =ces1    

subsection 7b74  7c7 ,cl]ical am5dm5t ,!
 item relat+ to section #abb 9 ! table (
 sections = "p ,,iii ( sub*apt] ,b (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ to read z foll[s3  ,sec4 
#abb4 ,c]ta9 uni=m$ s]vices retirem5t   
pay & relat$ b5efits4  4  7d7 ,effective
 date ,! am5dm5ts made by ?is section   
%all apply to taxable ye>s beg9n+ aft] !
 date ( ! enactm5t ( ?is ,act4